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Mobile Payment Market Size, Share & COVID-19 Analysis, By Payment Type (Proximity Payment, and Remote Payment), By Industry (Media & Entertainment, Retail & E-commerce, BFSI, Automotive, Medical & Healthcare, Transportation, Consumer Electronics, Others), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI100336



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The global mobile payment market size was USD 1.54 trillion in 2020. The market is projected to grow from USD 1.97 trillion in 2021 to USD 11.83 trillion in 2028 at a CAGR of 29.1% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with mobile payment witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 27.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Mobile payment enables instant money transfer and a secured substitute for cash-based transactions to the customers. The increasing availability of high-speed mobile networks along with the increasing penetration of smartphones is boosting the adoption of mobile-based payment solutions. The digitalization of payment services and growing e-commerce businesses are contributing to the growing market trends. The digital generation, i.e. generation Z, is likely to create vast opportunities for the payment industry. The companies are offering rewards, redeem points, loyalty points, and among others to attract the customer for paying through mobile devices. For instance, in June 2021 PayU in collaboration with twid launched a pay with rewards initiative for the customers to purchase using loyalty points and rewards.

COVID-19 Impact

Adoption of Contactless Payment to Soar Amid COVID-19 Pandemic

The coronavirus COVID-19 has impacted the global economy and humans significantly. It has drastically changed the channels and modes of transactions done by consumers and merchants. Today, people are more cautious about transacting in cash while shopping in public places. This has triggered a sudden spike in demand for contactless payment methods such as mobile wallets, NFC, QR code and more. In March 2020, the World Health Organization (WHO) recommended the consumers across the globe to adopt a contactless payment mode. This has helped to raise the payment transaction using mobile and boosted the contactless payments modes such as QR code, tap to pay by near field payment NFC, and carrier billing payment, among others.

According to MasterCard's survey, 79 percent of consumers globally are using contactless payment to maintain safety and cleanliness. These consumers are likely to continue with the payment mode post-pandemic. Although, the temporary shut-down of manufacturing and production units has resulted in the reduction of the transaction volume and cross-border payments. However, the adoption of mobile transaction mode has risen significantly. Therefore, the mobile-based payment mode is expected to gain rapid growth during and post the pandemic.


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Growing Adoption of Artificial Intelligence-based Applications in Payments to Accelerate Market Growth

Artificial intelligence (AI) is expected to propel the demand for mobile payment solutions. AI assists enterprises to analyze the data and recognize the patterns. Besides, it helps in identifying and monitoring the buying behavior of users. For instance, Starbucks, My Starbucks Barista app, allows mobile ordering and payment for its customers. When the customer’s location is near the store the designated amount is deducted instantly from the user's account with the help of AI technology. 

As AI can detect patterns, it can be very useful in detecting fraudulent activities in these payments. With the use-cases and historical data patterns, AI can detect fraudulent activity in real-time. Rising implementation of artificial intelligence for better customer experience and secured mobile transactions to drive the market growth. For instance, in February 2021, Visa Inc. launched VisaNet +AI to address the daily settlement issues and challenges of the banks, merchants, customers and financial institutes. AI helps providers in offering secured, transparent, predictable and instant payments.


Pay-backs and Reward Strategies to Boost Market Growth

Several payment service providers are investing in their businesses, thereby creating fierce competition in the consumer market. To maintain a loyal customer base and create new customers, the payment app companies such as Google Pay, Alipay, Amazon Pay, and others are using new strategies. For instance, Google Pay offers scratch cards containing a certain amount that can be achieved over minimal transactions. Such initiatives are helping in maintaining customer loyalty with the users paying through smartphones. Furthermore, companies have started to offer rewards and cashback when the customer opts for mobile channels for transactions. With the implementation of such reward facilities, the customer tends to use mobile apps for paying for every transaction.

The companies are offering an app to maintain track of points for the users. For instance, Samsung Pay offers reward points to its smartphone users for every purchase they make. The Samsung reward points can be used to purchase their products. Many customer-oriented industries such as travel & tourism, restaurants, retail stores and hospitality sectors, have started adopting mobile apps with rewards and coupons. For instance, Hilton Worldwide started room booking and payments through their own app, Honors, to enhance their customer engagement. This is expected to drive the mobile payment market share.


Security Concerns and Inconvenience of Using Cash to Impact Mobile-based Transaction

Although mobile payment solutions provide several features such as better operability, reliability, and flexibility, a majority of the end-users are still comprehensively dependent on cash for their daily activities. People have been using the traditional payment mode for several years, and thereby, they are reluctant in adopting new technologies. The customers owing to their habits feel safe in the traditional mode of payment when the transaction amount is huge. Also, the payment mode stores personal information such as location, amount balance, purchasing pattern, card PIN along with other details. This increases the risk of unauthorized usage of this personal data and increases security concerns amongst the customers. This is likely to hamper the growth of the market.


By Payment Type Analysis

Instant Payment Facilities to Drive Proximity Payment Demand

Based on the payment type, the market is categorized into proximity payment and remote payment.

The proximity payment segment is further sub-segmented into near field communication (NFC) and QR code payment. The remote payment is further categorized into internet payments, direct operator billing, digital wallet, and SMS payments.

Proximity payment refers to the in-store payment solutions using smartphones. The proximity payment is exhibiting rapid growth in the market owing to its instant payment offerings. Some of the mobile-based proximity payment options in the market include Google Pay/Send, Apple Pay, PayPal, PayTM, and more.

In the proximity payment segment, near field communication (NFC) to gain rapid growth rate. Many telecommunication companies such as China Mobile, AT&T, Vodafone Group, Bharti Airtel, and others are providing SIM-based NFC, which can be instantly operated at the point of sale (POS). The QR code segment is expected to gain maximum market revenue in proximity payment. The Quick Response (QR) code has gained instant popularity in the market with its launch owing to its ease of payment process. With the unique barcode technology, QR code can offer instant and secured transactions and is widely used for peer-to-peer transactions. 

Remote payment to gain a significant share during the forecast period. Remote payment offers ease of contactless payment through the available real-time online terminal. It blocks the unknown terminals from the network and provides fully secured transactions. In this segment, digital wallets gain traction owing to the increasing available wallets such as Freecharge, Amazon Pay, Payzapp, and more.

By Industry Analysis

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Surge in Online Banking and Digitalization to Boost BFSI Market Share  

Based on industry, the market is segmented into media & entertainment, retail, BFSI, automotive, medical & healthcare, transportation, consumer electronics, and others.

BFSI to gain rapid growth and maximum revenue share during the forecast period. The payment technology is providing promising opportunities for the BFSI industry, as this platform enables instant transactions without following a long process. The platform providers are partnering with banks and other banking service providers to integrate this technology into their payment platforms. This has led to the introduction of a mobile banking platform that allows users to do the payment for shopping, retail payments, electricity payments, and others.

The retail industry is getting highly impacted by the penetration of digitalization and technological innovation. The retail industry was the early adopter of payment technology. With the development of payment services, the retailer is constantly re-evaluating the payment solution. A better customer experience allows retailers to retain loyal customers and also to attract new customers. Retailers are keen on providing convenient payment options to customers.

The medical and healthcare industry to showcase steady growth. Its adoption in the healthcare industry offers ease of instantly paying medical bills for the patients. Similarly, in media and entertainment, the user is now trusting the mobile payment options for content subscriptions and more. The video streaming industry is offering movies and original TV series on subscription. Similarly, the adoption of mobile gaming is increasing, gamers can directly purchase the games using digital wallets.


Asia Pacific Mobile Payment Market Size, 2020 (USD Billion)

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Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.

According to the market report, Asia Pacific (APAC) is likely to hold the major market share market during the forecast period. In India, the adoption of digital wallets and QR code services has exponentially increased after the government’s demonetization action. Also, the government initiatives such as digitalization are expected to further boost the market in India. China is expected to gain the maximum revenue share owing to the dominant presence of key players such as Alipay.com Co. Ltd. The emergence of new e-commerce channels, rising online shopping, and new payment solutions are expected to support the APAC growth during the forecast period.

North America is anticipated to account for the second-highest market share. The U.S. has well-developed payment methods and a significant number of key players have their headquarters in the country. The players are attracting consumers in the U.S. and Canada by adopting strategies such as payback, and reward systems, among others.

Whereas Europe offers various digital payment solutions, wherein, maximum people own bank accounts and payment cards. The introduction of innovative payment solutions through smartphones is boosting the adoption of payment services in the region. Also, strategic partnerships between network providers, banks, and payment services are likely to boost market growth. For instance, companies such as Apple Pay, Advanzia Bank, Vodafone, Payconiq, and more have invested in European countries to surge mobile-based transactions.

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The Middle East and Africa region are expected to grow significantly during the forecast period. The existence of financial services, along with the good penetration of mobile phones and the internet are driving the market growth in the region. In Africa, Bharti Airtel has collaborated with Standard Chartered Bank and MasterCard for providing mobile wallets. This is likely to boost the market. Latin America is an emerging region in the global market owing to the increasing smartphone adoption and demand for contactless payment.


Emphasis on Launch of New Payment Platforms to Drive Market Development

The key companies are investing in the development of unique mobile device payment solutions. Various network operators and mobile payment providers are collaborating to enter the market. The key players across the industries are using these payment solutions to provide value-added services and to enhance the customer experience. To provide a convenient payment process, the companies are integrating payment options with their in-house app.

August 2021 – Amazon Inc. collaborated with Affirm Holdings to offer dedicated service buy now, pay later (BNPL) to some of the prominent e-commerce customers. The companies witnessed high demand for BNPL services during the pandemic.

August 2021 Boku Inc. launched mobile first (M1ST) mobile payment network along with 330+ payment methods such as direct carrier billing, mobile wallets, and real-time payments schemes. This launch is available across 900 countries through a single integration.

List of the Key Companies Profiled:

  • Alipay.com Co Ltd. (Hangzhou, China)

  • Amazon.com, Inc. (Washington, U.S.)

  • American Express Co. (New York, U.S.)

  • Boku Inc. (California, U.S.)

  • Google LLC (California, U.S.)

  • MasterCard International Inc. (New York, U.S.)

  • Obopay (California, U.S.)

  • Fidelity National Information Services (FIS), Inc. (Florida, U.S.)

  • PayPal, Inc. (California, U.S.)

  • Visa, Inc. (California, U.S.)


  • August 2021 – American Express Co. launched a web version and mobile app, Amex Pay for the payments of taxes, insurance, cable bills, internet bills, and more. The new application also offers rewards and promotions to the customers.

  • May 2020 – Network airlines, UATP collaborated with CITCON to offer mobile-based payment options using Alipay, China UnionPay, and WeChat Pay to its billion customers in China. The adoption of this payment mode is likely to boost customer loyalty and revenue sales of the airlines. 


An Infographic Representation of Mobile Payment Market

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The global mobile payment market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. In the scope, we have considered mobile payments done through near field communication (NFC), QR codes, mobile wallets, SMS, internet and operator billing. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.




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Value (USD billion)


Payment Type; Industry; and Geography

By Payment Type

  • Proximity Payment

    • Near field communication (NFC)

    • Quick response (QR) code

  • Remote Payment

    • Internet Payments

    • Direct Operator Billing

    • Digital Wallet

    • SMS Payments

By Industry

  • Media & Entertainment

  • Retail and Ecommerce

  • BFSI

  • Automotive

  • Medical & Healthcare

  • Transportation

  • Consumer Electronics

  • Others (Education, IT & Telecom, and others.)

By Region

  • North America (By Payment Type, By Industry, and By Country)

    • U.S. (By Industry)

    • Canada (By Industry)

  • Europe (By Payment Type, By Industry, and By Country)

    • U.K. (By Industry)

    • Germany (By Industry)

    • France (By Industry)

    • Spain (By Industry)

    • Rest of Europe

  • Asia Pacific (By Payment Type, By Industry, and By Country)

    • China (By Industry)

    • Japan (By Industry)

    • India (By Industry)

    • Rest of Asia Pacific

  • Middle East & Africa (By Payment Type, By Industry, and By Country)

    • GCC (By Industry)

    • South Africa (By Industry)

    • Rest of the Middle East & Africa

  • Latin America (By Payment Type, By Industry, and By Country)

    • Brazil (By Industry)

    • Mexico (By Industry)

    • Argentina (By Industry)

    • Rest of Latin America

Frequently Asked Questions

The market is projected to reach USD 11.83 trillion by 2028.

In 2020, the market size stood at USD 1.54 trillion.

Proximity payment is likely to lead the market.

Increasing government initiative in digital payment to drive market growth.

Alipay.com Co Ltd., Amazon.com, Inc., American Express Co., Boku Inc., Google Inc., MasterCard International Inc., Obopay among others are the top players in the market.

Asia Pacific region is expected to hold the highest market share.

Asia Pacific is expected to grow with the remarkable CAGR.

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